US President Says No Medicare Weakening

Just after submitting revisions to his budget that seemed to indicate a slight easing in the budget negotiations, US President Clinton has pledged to continue to veto any budget-balancing plan that weakens Medicare. While stressing to reporters that he wants to work with the Republican Congress to achieve a balanced budget, the President said he would not permit the repeal of guaranteed medical coverage for Medicare or Medicaid beneficiaries since it would "violate our values."

Republicans have stopped short of saying there will be no budget compromise unless it includes their plan to shift federal control of much of the program to the states. Noting they still support the plan included in the GOP budget legislation vetoed by the President, they criticized Mr Clinton for making the statement while the negotiations were moving so slowly.

House Commerce Committee chairman Thomas Bliley noted that the stalemate is about power, not values, and said the states require the flexibility to meet the needs of their citizens. With the Congressional Budget Office scheduled to issue its latest economic projections and spending forecasts, it was unclear whether that will signal the beginning of serious budget discussions or if the two sides will continue to jockey for political position.